Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Qwikcilver and Woohoo Developing a Complementary Platform (Abridged)
This case on Qwikcilver and Woohoo analyses the development of the Qwikcilver gift card processing business, its various challenges in evolving the primary B2B business model and how the firm has introduced the Woohoo platform to help with direct customer connect. It begins with the efforts of the founders in identifying a green field opportunity, how they go about bringing in the initial customer base and then the case delves into the different developments that have shaped the firm's evolution. The case helps develop an understanding of the gifting market in India, the challenges of building a sustainable business in this sector and how the firm compares with the rest of the competition worldwide. It highlights how a Software-as-a-Service (SaaS) business model could increase resilience to competition by bringing in a new side in the form of direct connect with customers who buy or redeem gift cards, thus transforming from a pipeline business to a two-sided platform business model. The case is used to teach the basics of pipeline and multi-sided platform business models, the different actors in the platform business and the concept of network effects. It should help the students appreciate the differences between the pipeline and platform business models, and how a platform business model can bring in additional competitive differentiation as compared to a pure SaaS approach by increasing switching and multi-homing costs for the customers.
Authors :: R. Srinivasan, Sandeep Lakshmipathy, Padmavathi Koride
Swot Analysis of "Qwikcilver and Woohoo Developing a Complementary Platform (Abridged)" written by R. Srinivasan, Sandeep Lakshmipathy, Padmavathi Koride includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Qwikcilver Woohoo facing as an external strategic factors. Some of the topics covered in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) case study are - Strategic Management Strategies, Economics, International business, IT and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, there is increasing trade war between United States & China, technology disruption, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, wage bills are increasing,
supply chains are disrupted by pandemic , there is backlash against globalization, etc
Introduction to SWOT Analysis of Qwikcilver and Woohoo Developing a Complementary Platform (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Qwikcilver Woohoo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Qwikcilver Woohoo operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) case study
2. Improving business portfolio management of Qwikcilver Woohoo
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Qwikcilver Woohoo
Strengths Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Qwikcilver Woohoo in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) Harvard Business Review case study are -
Strong track record of project management
– Qwikcilver Woohoo is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Qwikcilver Woohoo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Qwikcilver Woohoo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Qwikcilver Woohoo has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Sustainable margins compare to other players in Strategy & Execution industry
– Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) firm has clearly differentiated products in the market place. This has enabled Qwikcilver Woohoo to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Qwikcilver Woohoo to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Qwikcilver Woohoo are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Successful track record of launching new products
– Qwikcilver Woohoo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Qwikcilver Woohoo has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Organizational Resilience of Qwikcilver Woohoo
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Qwikcilver Woohoo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Qwikcilver Woohoo is one of the most innovative firm in sector. Manager in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Qwikcilver Woohoo is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Qwikcilver Woohoo is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
High brand equity
– Qwikcilver Woohoo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Qwikcilver Woohoo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Qwikcilver Woohoo has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) are -
Products dominated business model
– Even though Qwikcilver Woohoo has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, R. Srinivasan, Sandeep Lakshmipathy, Padmavathi Koride suggests that, Qwikcilver Woohoo is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged), in the dynamic environment Qwikcilver Woohoo has struggled to respond to the nimble upstart competition. Qwikcilver Woohoo has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged), it seems that the employees of Qwikcilver Woohoo don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Qwikcilver Woohoo supply chain. Even after few cautionary changes mentioned in the HBR case study - Qwikcilver and Woohoo Developing a Complementary Platform (Abridged), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Qwikcilver Woohoo vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged), is just above the industry average. Qwikcilver Woohoo needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Capital Spending Reduction
– Even during the low interest decade, Qwikcilver Woohoo has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High operating costs
– Compare to the competitors, firm in the HBR case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Qwikcilver Woohoo 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Qwikcilver Woohoo is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) HBR case study mentions - Qwikcilver Woohoo takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Aligning sales with marketing
– It come across in the case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) can leverage the sales team experience to cultivate customer relationships as Qwikcilver Woohoo is planning to shift buying processes online.
Opportunities Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Qwikcilver Woohoo to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Qwikcilver Woohoo in the consumer business. Now Qwikcilver Woohoo can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Qwikcilver Woohoo to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Manufacturing automation
– Qwikcilver Woohoo can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Qwikcilver Woohoo in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Qwikcilver Woohoo can use these opportunities to build new business models that can help the communities that Qwikcilver Woohoo operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Building a culture of innovation
– managers at Qwikcilver Woohoo can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Qwikcilver Woohoo to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Qwikcilver Woohoo to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Qwikcilver Woohoo can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Creating value in data economy
– The success of analytics program of Qwikcilver Woohoo has opened avenues for new revenue streams for the organization in the industry. This can help Qwikcilver Woohoo to build a more holistic ecosystem as suggested in the Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) case study. Qwikcilver Woohoo can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Qwikcilver Woohoo can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Qwikcilver and Woohoo Developing a Complementary Platform (Abridged), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Qwikcilver Woohoo has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Qwikcilver Woohoo is facing challenges because of the dominance of functional experts in the organization. Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) are -
Stagnating economy with rate increase
– Qwikcilver Woohoo can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Qwikcilver Woohoo.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Shortening product life cycle
– it is one of the major threat that Qwikcilver Woohoo is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Qwikcilver Woohoo needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Environmental challenges
– Qwikcilver Woohoo needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Qwikcilver Woohoo can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Qwikcilver Woohoo business can come under increasing regulations regarding data privacy, data security, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Qwikcilver Woohoo will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology acceleration in Forth Industrial Revolution
– Qwikcilver Woohoo has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Qwikcilver Woohoo needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Consumer confidence and its impact on Qwikcilver Woohoo demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing wage structure of Qwikcilver Woohoo
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Qwikcilver Woohoo.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Qwikcilver Woohoo can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) .
Weighted SWOT Analysis of Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Qwikcilver Woohoo needs to make to build a sustainable competitive advantage.